What is warehouse logistics and the outsourcing of warehouse services, and why are they important for businesses in the current market conditions?
Warehouse logistics encompasses all activities related to the planning, management, and handling of goods in a warehouse. It is a part of overall logistics carried out by most businesses worldwide. Warehouse logistics is responsible for warehouse space and all operations performed on the goods, including sorting, storage, order picking, and preparation for shipping.
Warehouse Service Outsourcing
Warehouse service outsourcing is a type of service provided by external logistics operators to businesses that do not have their own warehouses or find it uneconomical to maintain their own warehouses due to the nature of their operations, the size of the goods, or the need for significant financial investment in warehouse development.
Any business, regardless of the type of goods, can benefit from outsourcing warehouse services. Specialized logistics operators have the experience and all the necessary resources (people, equipment, IT systems) to provide comprehensive order fulfillment that can be tailored to the individual needs of the client.
During the so-called lockdown caused by the pandemic, many entrepreneurs faced problems with closed stores and other restrictions, often resulting in a complete paralysis of their operations. The Covid pandemic has had and continues to have a tremendous impact on all aspects of our lives, including trade. Many entrepreneurs had to quickly revolutionize their sales methods and switch from traditional brick-and-mortar models to e-commerce.
Consequently, online sales through the Internet became the only solution. However, this led to challenges in warehousing goods and handling order shipments. The lack of qualified employees, storage space, and the need for a new work organization posed significant challenges.
Establishing and organizing a dedicated warehouse entails enormous costs and organizational issues. Long-term lease agreements, equipment purchases, employee recruitment and training, substantial investment, and, above all, time are just the tip of the iceberg when it comes to setting up one’s own warehouse space.
That is why many entrepreneurs have turned to outsourcing warehouse services, finding partners who offer warehouses with logistical support.
Entrepreneurs who already have knowledge about outsourcing warehouse services understand the important aspects to consider when choosing a logistics operator and the benefits of establishing such a partnership. However, for many, outsourcing warehouse services still involve many question marks.
Therefore, we aim to address the key issues related to outsourcing warehouse logistics services and the benefits it brings to entrepreneurs.
When is an external warehouse a good solution?
Having your own warehouse can certainly be profitable. However, it comes with significant financial investments, the need to assume various risks, insurance requirements, the necessity of hiring staff, and many other conditions. If the entrepreneur is prepared for all of these and if sales and turnover allow them to earn enough to cover these expenses, then why not.
However, if the goal is to eliminate the risks associated with warehousing goods, employees, and all related responsibilities, or if business growth necessitates a rapid increase in warehouse space, then outsourcing warehouse services is the best solution.
By opting for outsourced warehouse logistics, you provide your company with time and cost savings by receiving high-quality services tailored to the type and nature of your business. This means that you pay only for the space you need and for the actual operations performed, without a single penny more. The price includes access to the latest technologies, infrastructure, IT software, as well as necessary support and expert knowledge.
By utilizing external warehouse resources, you entrust logistics to professionals with the knowledge, experience, and appropriate means to handle your specific requirements. This allows you to dedicate your time to the development of your own company and acquiring customers.
Since you only pay for the actual utilized warehouse space and operations, outsourcing warehouse services are much more beneficial than creating and maintaining your own warehouse.
Langowski Logistics: Warehouses with Logistical Support
In order to ensure the highest quality service for your clients and gain their loyalty, a professionally organized distribution of your goods is crucial and determines how you compare to the competition. Therefore, it is worth considering the support of experts in warehouse logistics.
Want to learn more? Wondering if it is cost-effective for you? Contact us. Our advisor will assist you in selecting and pricing the services, and you will make the decision.